Does a Dell Buyout Make Sense?

Dell held talks with buyout firms to discuss possibly go private as the tech company struggles to find a new course, David Benoit reports on digits. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... that it's ... it's a lot ... so let's stop shut it down to about five percent ... on the ... full City might go private ... with a private dental The heaven or hell that is the question and David Benoit has him more for domestic finance about what's inside the band and come on give you ... a yes or no question ... aam ... go and find it's um this would be when a ... how does this with this we put a lot of debt that would you be used to buy the stall ... and then the company would have to sort itself out right exactly says that Dell's market cap RightNow's around twenty billion or more to that with this share gain ... in so you would ... assume need private equity bidders which there are probably multiple would come and ... give it about ... ten to fifteen billion dollars in new debt ... Michael Dell and self the CEO on sixteen percent of the shares ... so probably just be carried over though I tell that ... but yet about seven billion dollars in equity is cutting the assumption and fifteen and ... content now the idea here is to take the company private so that doesn't have to have the scrutiny of quarterly earnings from forced to write write exactly Dell Dell's clearly struggling it's the ... it's ... you know PC maker in a time when PCs are not exactly the best interests ... best selling item in the tech world is is is the best time to do because when when you load the company off with the debts you have to pay interest um coupons to the debt holders the bondholders on oftentimes is a tremendous amount of that time and doesn't give the watch womb to ... tomb in Newburgh Surah the public eye but you all all all the things yet that that which is just a place that may catch right there's certainly a lot of conifer and I think one one kind of Parramatta ... here is is better pronounce pretty easy and pretty cheap ... so that you know ... in some ways the coupons would not be an expensive but ... certainly levering up a company or the eighteen billion dollars of debt isn't that ... a small interest rate of fifteen billion is a lot of interest costs ... so that so that's the and know the question is is ... can ... can multiple PC mag is making pretty generic PCs coming and coming to life with HP this to all those ... non Muslims ... right right certainly I think there are questions about where Dell doesn't think that's Cunnane the argument for why I mean it would work better privately ... because they're allowed to say hey let's let's stop ... and think about ... what products are going to be best for us what ... products and sell where the future is ... in it when your public company contacted ... you know keep moving funds around to keep shutting down units are firing people it's not it's messy know this or I'm told there is the sum of cash it in the company but its ... overseas and I cannot be used with the very effectively for part of ... any private deal because it will be subject to repatriation tax write exactly and you would call person release the product to firms looking at the center figure this out but I'm ... DEL States and spines as fourteen point two billion dollars ... in cash and investments ... essentially some of that you know was like a longer term ... campaign money holding in one year ... bank deposits renounce most toxic of the artists that ... it was the same thing with Apple economists hundred billion dollars in a couple hundred billion dollars in cash and investments ... but ... that money ... be held overseas analysts say as much as ninety percent of it could be ... could cost him four billion dollars in taxes U S government to prevent that from ... twenty seven years economists are right now